End of 06/07 Financial Year Mini Cash ISA Discussion Area

hushpuppy

Hi all,

I am a bit confused I have just been given £3k and was thinking of putting it into a mini cash ISA before the end of this tax year, a couple of questions:

1. If I open one now what will it be worth on 6 April 2007 (new financial year)
2. Do I still get the full tax benefit of 22% 0r 40% for such a short period of time
3. If I do can I then withdraw it on the 6th of April.

I suspect I am being very naive here?

jem16

hushpuppy wrote:

Hi all,

I am a bit confused I have just been given £3k and was thinking of putting it into a mini cash ISA before the end of this tax year, a couple of questions:

1. If I open one now what will it be worth on 6 April 2007 (new financial year)

About £3014.40

2. Do I still get the full tax benefit of 22% 0r 40% for such a short period of time

I think you are getting mixed up with tax relief on pensions.

NS&I Direct ISA pays 5.8% interest over 1 whole year. This is one of the top, no-strings, cash ISAs.

3. If I do can I then withdraw it on the 6th of April.

Yes you can withdraw your £3014.40

I suspect I am being very naive here?

Just a little I'm afraid.

optimist_2

Hi,

What are people's views on the new Abbey Super Isa that has come out recently? As well as an 8% Isa, but this falls to 5.25% in May of next year. They are offering 9% and 23% over a three and five year term for their Guaranteed Growth Plan. Is this a good deal on a stock market related product, or would this be better invested in a separate stocks and shares investment account etc?

Aside from this, are the Newcastle fixed rate and NS&I deals reckoned to be the best around?

Thanks!

pktech

I'm not really sure why Martin didn't recommend the ING Direct more highly. Yes, it may be 6.55% for only 6 months and then drop to 5.13% but even if you're lazy and don't switch that works out at 6.00% AER which is better than NS&I. If you switch to the best rate that accepts transfers in 6 months then you should do even better. Assuming the rates will be the same in 6 month (of course they probably won't be) then the Yorkshire BS's 5.65% for the second 6 months would give you a 6.20% AER.

Have I missed something or done my sums wrong?

They biggest problem I can see is that they don't accept transfers.

Detail_Merchant

I've just seen Martin's new newsletter that mentions a new Cash Mini ISA launching soon at 6.5%, but he hasn't said who yet.

Did a quick Google News search, and there's an article on another web-site:

http://www.myfinances.co.uk/savings/news/savings/mini-cash-isa/barclays-launches-best-mini-cash-isa-paying-65-$468309.htm

Looks like Barclays are launching a new ISA on Friday (16/3/07), but unfortunately it doesn't allow transfers in. I wonder if the press release is embargoed until nearer the end of the week?

Anyway I'm thinking of transferring to Abbey's Direct ISA, @ 5.75% (for over £9,000) which includes a bonus until 1/5/08, but at least that's over a year, and it accepts transfers. Their Super ISA has an attention grabing rate @ 8.1%, but you have to put the same amount of cash into a shared based product of theirs, which only pays 50% of the growth in the FTSE, so a bit useless.

Regards,

Detail Merchant

Compound_2

I find it slightly odd that Martin is advising to wait for a Barclays account that has an introductory bonus, since such banks are notorious for announcing ISAs with headline-grabbing rates which later become uncompetitive. It will be interesting to see whether there is any guarantee on rates like NS&I, or if there are other grounds for believing this will be good value in the long term like KRBS.

ManAtHome

Also surprised - the additional 0.7% gets you an extra £21, but then you have to hope that a decent rate account will accept transfers in this time next year. And as for ING - well you get an extra £6 (unless BoE rate goes up and chips NS&I closer to or over 6% AER), then you start losing £20 a year...

[edit] Barclays standard cash ISA starts at 4.75% (5.30% for £21k+)

Bobolink

Dammit I've just set up an NS&I at 5.85% then saw Martin's tip about the 6.5% :wall: Is it ok to transfer an ISA to the new account?

masonic

Thanks for tracking that account down, DM. I might have guessed it didn't accept transfers - I can now go back to being torn between Abbey and Ruffler.

masonic

Bobolink wrote: »

Dammit I've just set up an NS&I at 5.85% then saw Martin's tip about the 6.5% :wall: Is it ok to transfer an ISA to the new account?

Erm, "...doesn't allow transfers in."

It might still be around on 5th April.